Moving ahead of Rivals: Gaining Product Market Advantage via Product Imitation in Apple App Store
Hye Young Kang, Fernando F. Suárez · Academy of Management Proceedings · 2016
Strategy and innovation scholars have paid undue attention to deterring imitation to sustain a superior performance. However, mastering imitation can be as important as preventing imitation under some conditions, in particular in high-velocity environments. Despite its potential significance, there is a dearth of scholarly articles on the effect of imitation on performance, and empirical studies on the topic are even rarer. In this paper, we extend our understanding on the role and effects of imitation with an empirical analysis in the context of the Apple iOS app store, an increasingly emerging multi-sided platform market. We explore the mechanisms by which product imitation leads to product market advantage. We move beyond a dichotomous conceptualization of imitation by focusing on the breadth of imitation and the speed of imitation in high- velocity environments. We find an inverted U-shaped relationship between the breadth of imitation and product market performance. We also find a moderating effect of an imitator’s prior market experience in enhancing the performance effect of the breadth of imitation. Moreover, we find imitation speed to be associated with superior product market advantage.